China's wealthy are moving to the U.S. in rising numbers. This banking startup hopes to capitalize on the migration.
Sun Pacific Bank, which is still in the regulatory approval process in the U.S., hopes to cater specifically to high-net-worth mainlanders heading to sunny California.
"We are playing into the cultural difference between people from Taiwan, Hong Kong and mainland Chinese," Chen Wei, the bank's chairman and co-founder, told CNBC Wednesday. "Most of the Chinese banks based in Los Angeles right now are either funded by Hong Kong or Taiwan 20 or 30 years ago."
Among issues a mainlander might face, taking money out of China can be complex on a regulatory basis.
Chen believes the migration of mainland Chinese to the U.S. is set to be a major trend over the next 10 to 15 years, citing their dominance of the EB-5 immigration program. That program provides 10,000 visas annually to foreigners heading to the U.S. - if they invest at least $500,000 and create at least 10 jobs. Last year, around 85 percent of those visas went to mainland Chinese.